Can I be successful with BRRRR Strategy today considering current FL market cond?

[Khemraj Hamnauth]

Hey BP, rookie investor here. I've spent the past month digging into research and learning daily. Saving up for down payment/reserves. Looking to start my journey by acquiring a 3/2 SFH or multifamily BRRR, 1400-1900 sq ft in Tampa Bay Area. It is no secret we have a lot of hurricane affected areas. I have a team that can do the rehab work and we have some decent projections but I am stuck on recalculating ARV. With the FL market showing average 60+ days on market for MLS listings plus the "boogeyman" flood insurance cost to consider, is anyone having success in moving properties? If so, are hard money lenders scrutinizing deals even more?
Any advice would be appreciated. 

[Cody Bergstrom]

Hey Khemraj,

Great question, man. I'll tell you this—the BRRRR method can still work if you play it smart. I'd suggest focusing on single-family homes, rather than multifamily, for your first one. Multifamily's great, but SFHs are moving better in this market, and they're easier to refinance with DSCR loans.

I agree with you—MLS is slow, but that just means you need to go off-market. That's where the real value-add stuff is. Think distressed properties with cosmetic upside. Avoid trying to flip it. With flood insurance costs and a high Days on Market, a flip exit is risky right now. Go for a buy, rehab, rent, refi, and hold play. That long-term rental cash flow is what makes it safe today.

And yeah, lenders are scrutinizing deals more, especially on the DSCR side. So make sure you run your numbers tight. Get a clear understanding of what your ARV will be and what the DSCR loan will look like after the rehab.

Hope that helps, man. Sounds like you’ve got a great start—just dial it in, be conservative, and make that first one count.

Let me know if you'd like to discuss the topic in further detail. 

Best, 

Cody Bergstrom
Graystone Investment Group